The project manager has a purchase agreement to acquire the property through a swap agreement in a single act with the signing of Urbanitae's financing. In addition, the project has a building and demolition license already granted. 

Urbanitae investors will enter the project through the granting of a mortgage loan committed in two Tranches. This first Tranche has a fixed annual rate of 11.0% and a term of 24 months with a possible extension of 6 months in month 24. 

The exit of Urbanitae investors is expected to occur through the sale of the first homes, whose marketing will begin once the works begin.

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed-rate loan to the company PROMOTORA Y INMOBILIARIA CAVAL 2025, S.L.

The total amount of the gross loan amounts to up to 2,435,000 €, fully financed by Urbanitae investors. The total loan will be structured in two tranches, whose main characteristics are as follows (you can consult more information in the document "Fundamental Data of the Investment"):

• Total loan amount: up to a maximum of 2,435,000 €, committed in two tranches: 

I. A first tranche or Tranche A, for an amount of up to 1,105,000 €, to be raised by Urbanitae investors.

II. A second tranche or Tranche B, for an amount of up to 1,330,000 €, to be raised by Urbanitae investors.  

• Simple annual fixed interest rate of 11.0% for Tranche A.

• Term of 24 months + 6 months extension for Tranche A.

• Minimum interest period: 18 months.

• The interest and principal of the loan will be paid at maturity (interest will begin to accrue from the moment the loan contract is formalized).

• Resulting leverage ratios: (i) LTC equivalent to 72.4% without including as equity the non-monetary contribution of the land; (ii) LTC equivalent to 53.8% including as equity the non-monetary contribution of the land; (iii) LTV equivalent to 54.3% on the appraisal of the underlying asset in a finished building hypothesis.

Total early repayment will be allowed at any time, subject to a minimum guaranteed return for the Loan equivalent to 18 months of interest. An extension of an additional 6 months is allowed at month 24.

Regarding the main guarantees for the repayment of this loan, they are as follows: 

• First rank mortgage on the underlying asset (excluding the swapped units), with mortgage liability of 150% of the principal amount of the mortgage loan. The mortgage must be registered and free of any charges.

▪      First rank pledge on the Borrower's shares.

▪      First rank control pledge, without fund intervention, on the project's bank accounts, including the escrow account in which the developer commits to deposit the additional equity funds to commit for the development of the Project's work on day one of the loan.

▪     Cash sweep (“cash-sweep”) for 100% of the sale amount of the underlying guarantee (excluding the swapped units).

WHY INVEST?

There are several reasons to invest in this project:

• The collateral asset of the loan is a plot of land located in Sabadell, Barcelona, which already has a building and demolition license and a developed project to start construction as soon as the sale and financing from Urbanitae is formalized.

• The developer has extensive experience developing similar projects both in the province of Barcelona and in the Balearic Islands. 

• Sabadell shows sustained demographic growth mainly derived from migratory dynamism that has maintained a population increase above the regional average

• The return that the investor will obtain will be 11.0% per year with a minimum period of guaranteed interest of 18 months

• The project has a first rank mortgage guarantee on the underlying asset.

MARKET

A market study has been carried out to determine if the sale prices proposed by the manager are reasonable.

There is information available about the market within the "Sales Witnesses" documentation, where you will find a list of homes for sale in the area.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 24 months with a possible extension of 6 months in month 24.

• March 2026, granting of the Loan by Urbanitae investors, purchase of the asset and start of demolition works.

• Q4 2027, completion of construction works.

• Q1 2028, delivery of the homes and repayment of the loan from Urbanitae investors. 

RISKS

All investments carry a risk. We detail the clearest risks we have identified for this project: 

• Risk of deviations in construction times and costs, since dependence on an external contractor for the execution of the work could result in cost overruns and delays with respect to the project's planned schedule. This risk is partially mitigated since (i) the initial phase of the structure is subcontracted to a company of the same promoter group with the aim of avoiding delays and reducing the total duration of the project, (ii) the promoter has extensive experience in comparable projects in nearby locations AND (iii) we have carried out a Technical Due Diligence with an independent expert who validates the prices and deadlines set out in the business plan.

• Commercial risk in the sale of the homes, causing a delay in the repayment of the loan, since marketing has not yet begun which limits visibility on market absorption for this product. To mitigate this risk, a market analysis has been carried out based on comparables that corroborates that the prices contemplated in the business plan are aligned with the market and that there is not a wide offer of new construction in Sabadell.

• Risk due to the swap structure for the acquisition of the land, which implies a lower contribution of own funds in the project and a slightly tighter margin. This risk is mitigated by the promoter's contribution of more than €925,000 of own funds in the project, which demonstrates the alignment of interests between Borrower and Lender, and a pre-tax return (PBT) of the project above 20% according to the Business Plan.

• Possibility of change of the agreed conditions. This risk includes potential substantial changes that take place from the start of the financing campaign until the formalization of the loan contract, in which case the project would be cancelled and the investment returned.

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Warnings and Risks

Urbanitae Real Estate Platform (Urbanitae) does not hold the status of an investment services company, nor a credit institution and is not attached to any investment guarantee fund or deposit guarantee fund. The information published by Urbanitae Real Estate Platform on its Website is for informational purposes only and in no case can it be considered as recommendations to investors.

The crowdfunding projects published by Urbanitae on its Website are not subject to authorization or supervision by the National Securities Market Commission or the Bank of Spain, therefore, all the information provided by the manager in relation to the projects has not been reviewed by them.

Urbanitae expressly informs that, in case of non-compliance with the total volume of the project's investment, the deadline for fundraising may be exceeded by up to 25%, maintaining the same investment conditions. Likewise, the project may be financed by Urbanitae when at least 90 percent of the financing objective has been reached, once the participation in the project that the platform itself may have is discounted. 

Investing in the projects published on this Website may entail certain risks, such as, the risk of total or partial loss of the invested capital, of not obtaining the expected monetary return or of lack of liquidity. Therefore, we warn investors to only invest an amount they are willing to lose and we suggest they diversify their investments to minimize and mitigate potential risks. In the event that the manager is unable to return or remunerate the funds received, Urbanitae will not return the investors their investment made.

This project will be open to any investor registered in Urbanitae, and any of the following registered persons may invest in it:

• Urbanitae partners who own at least 20% of the share capital or voting rights;

• Managers or employees of Urbanitae;

• Individuals or legal entities linked to these partners, managers or employees by control.

In this sense, Urbanitae guarantees that the investments of any of these people will be made through the platform, on the same terms and conditions as any other investor, without receiving any preferential treatment, or privileged access to information compared to the rest of the investors registered in Urbanitae. In accordance with the Internal Code of Conduct of Urbanitae, these investors are obliged to internally communicate these operations.

Once the investment in the project is closed, Urbanitae will provide information in the project investment area about the amount invested by these investors, the type of investor who has made the investment, and the percentage it represents with respect to the total financed, always complying with the data protection policy.